Toshiba 2000 Annual Report Download - page 41

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39
Toshiba estimates that the net effect of foreign exchange movements during the fiscal year was a ¥210 billion decrease in operating
income. This consists of a ¥265 billion decline in net sales and a ¥55 billion decline in procurement expenses. A ¥106.3 billion
(US$1,004 million) loss was recorded for settling the floppy disk controller litigation in the U.S. Net financial expenses declined from a
net expense of ¥31.4 billion to a net expense of ¥21.5 billion, mainly because of decreasing debt and low interest rates in Japan.
Other income is mainly the result of gains on sales of securities. Other costs and expenses include restructuring expenses for semi-
conductor business and other.
As a result, income before income taxes and minority interest fell by ¥56.1 billion from the previous year to a loss of ¥44.8 billion
(US$423 million). Income taxes expense declined by ¥34.5 billion to a tax benefit of ¥9.0 billion (US$8.5 million). Income taxes for
fiscal 1998 included a ¥16.8 billion charge due to the revaluation of net deferred tax assets balance resulting from a reduction of the
normal statutory tax rate in Japan.
Although growth in operating income far exceeded the negative effect of the yen’s appreciation on sales, the substantial impact of
the floppy disk controller settlement expense caused Toshiba to report a net loss of ¥28.0 billion (US$264 million), the second
consecutive annual loss.
SEGMENT INFORMATION
The following segment information is based on Japanese accounting standards. Following the changes of management jurisdiction
due to the introduction of an in-house company system in April 1999, Toshiba has reorganized its industrial segments. The previous
five segments of Information & Communication Systems, Electric Devices & Materials, Power & Industrial Systems, Consumer Prod-
ucts and Service & Other have been changed into six segments—Information & Communications and Industrial Systems, Digital Me-
dia, Power Systems, Electronic Devices & Components, Home Appliances and Others. Consolidated financial data for previous years
have been reclassified to confirm with the current segments.
Industry Segments
Thousands of
Millions of yen U.S. dollars
Years ended March 31
2000 1999 1998 2000
Net sales:
Information & Communications and Industrial Systems
Unaffiliated customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,698,803 ¥1,651,068 ¥1,717,872 $16,026,443
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,476 145,081 153,227 1,504,491
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,858,279 1,796,149 1,871,099 17,530,934
Digital Media
Unaffiliated customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,334,678 1,209,575 1,109,454 12,591,302
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,014 196,904 165,266 1,726,547
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,517,692 1,406,479 1,274,720 14,317,849
Power Systems
Unaffiliated customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 553,322 503,863 563,088 5,220,019
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,359 16,714 14,452 163,764
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,681 520,577 577,540 5,383,783
Electronic Devices & Components
Unaffiliated customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,247,386 1,038,912 1,129,292 11,767,792
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229,932 176,353 165,990 2,169,170
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,477,318 1,215,265 1,295,282 13,936,962
Home Appliances
Unaffiliated customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 636,054 695,588 723,450 6,000,509
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,840 12,028 51,185 224,906
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659,894 707,616 774,635 6,225,415
Others
Unaffiliated customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,129 201,896 215,342 2,633,293
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,257 282,645 268,282 1,832,613
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473,386 484,541 483,624 4,465,906
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (807,878) (829,725) (818,402) (7,621,491)
Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,749,372 ¥5,300,902 ¥5,458,498 $54,239,358